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This example is not an example of personal items being sold at a loss. 

First, personal items sold at a loss, the loss is not deductible, the transaction would need to be shown as a reversing entry to wash the 1099-K reported income. 

Second, if the items are being sold for a profit, there is a question if there is a profit motive and whether the 1099-K income should be reported as Schedule C income and the cost as cost of goods sold Inventory and other business expenses can then be deducted for the year.

For personal items sold at a loss with income reported on a 1099-K, you can report in TurboTax as follows: